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The computation formula is another formula for standard deviation that gives us the same

results as our previous formula. However, this one is easier to use with the calculator,

since there are fewer subtraction involved.

s = SSx where SSx = x

2

!x"

2

n # $ n

To compute x

2

, we first s%uare all the x values and then ta&e the sum. To compute !x"

2

,

we first sum the x values and then s%uare the total.

'sing the (omputation )ormula*

$" (reate a table using 2 columns, x and x

2

.

2" +valuate SSx.

," +valuate the sample standard deviation b- using the formula.

+xample*

.T. and /ro0ine are two stoc&s traded on the 1ew 2or& Stoc& +xchange. )or

the past six wee&s -ou recorded the )rida- closing price !dollars per share"*

.T.* $3 $4 2$ 22 2$ 2,

/ro0ine* 5.2 5.2 5.3 5.2 6.2 6.7

a" (ompute the mode, median, and mean for .T..

b" (ompute the mode, median, and mean for 8organ Trust.

c" (ompute the range and sample standard deviation, for .T..

d" (ompute the range and sample standard deviation, for /ro0ine.

Solution*

/arts . and 9 should be ver- eas- for -ou at this point of the term.

0et:s loo& at /art ( using the computation formula. ;e will first create a table

using 2 columns x and x

2

, where the second column is <ust the number is the first column

multiplied b- itself.

(losing /rice of .T. =ver 0ast 5 ;ee&s !dollars per share"*

x x

2

$4

$3

2$

2$

22

2,

x = x

2

=

1ow that we have created our table, we will evaluate SSx. Since we &now what

SSx from above, we need to find the values of x

2

and !x"

2

. )rom the total of the second

column, we see that x

2

= >>>>>>>. 9- s%uaring the total of the first column, we get

!x"

2

= >>>>>>>. 1ow all we have to do is plug these numbers into our formula from

above.

SSx = x

2

!x"

2

=

n

)inall-, we will evaluate the sample standard deviation b- using our formula.

Since n = $?, then n # $ = >>>>>.

s = SSx =

n # $

See if -ou can complete /art @ !/ro0ine"A

+xamples*

$" To get the best deal for (@ dealer, Bessica called eight appliance stores

and as&ed the cast of a specific model. The prices she %uoted are listed below*

C,?? C2?, C262 C,,2 C77? C$$3 C$23 C2D7

a" (alculate the mode, median, and mean.

b" (alculate the range and sample standard deviation.

2" ;hich is greaterE

a" The standard deviation of the data* D, D, 4, $7, F $4.

b" The standard deviation of the data* 5, 5, 4, $7, and $5.

," Gollflex and 8organ Trust are two stoc&s traded on the 1ew 2or&

Stoc& +xchange. )or the past seven wee&s -ou recorded the )rida-

closing price !dollars per share"*

Gollflex* 2$ 2? 2? 2, 27 2? 2D

8organ Trust* D, D$ D? D? D? DD D7

a" (ompute the mode, median, and mean for Gollflex.

b" (ompute the mode, median, and mean for 8organ Trust.

c" (ompute the range, sample standard deviation, and sample

variance for Gollflex.

d" (ompute the range, sample standard deviation, and sample

variance for 8organ Trust.

7" .t the 'niversit- of (olorado, a random sample of five facult-

members gave the following information about the number of hours

spent on committee wor& each wee&* , 5 7 $ D

a" )ind the range, sample mean, sample standard deviation and

sample variance.

D" . random sample of six credit card accounts gave the following

information about the pa-ment due on each card* CD,.$4

C6$.$2 C$$D.$? C26.,? C,5.$3 C55.74

a" )ind the range, sample mean, sample standard deviation, and

sample variance.

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